DEED GLOSSARY

PERPETUAL LICENSE

DEFINITION

A perpetual license is a grant of permission to use a work that has no fixed end date, but which otherwise remains a license, not a transfer of ownership. The licensee can use the work indefinitely under the agreed terms, but the licensor still owns the underlying rights.

WHAT IT MEANS IN PRACTICE

The word 'perpetual' describes duration, not scope. A perpetual license can still be non-exclusive, limited to specific territories, or restricted to specific media, and it says nothing on its own about whether the licensor can also license the same work to others.

People frequently confuse a perpetual license with buying the work outright. They are not the same thing: an assignment moves ownership, and a perpetual license just removes the time limit on permission to use it. The original creator keeps the copyright and can still sue for uses outside the license's scope.

This distinction matters commercially. A stock photo bought under a perpetual license can be used forever in the ways the license describes, but the buyer cannot resell the underlying rights, sue infringers themselves, or stop the photographer from licensing the same photo to a competitor.

Perpetual licenses are common in software and stock media precisely because they give the buyer the practical comfort of never needing to renew, without requiring the seller to give up the asset entirely.

AN EXAMPLE

A furniture brand buys a perpetual license to use a set of product photographs in its catalogue and website. Years later it wants to put the same photos on merchandise, which the original license did not cover, so it has to go back to the photographer for a new license even though the original grant never expires.

WATCH OUT

Buyers assume 'perpetual' means 'unlimited', but a perpetual license can still be tightly scoped in every dimension except time.

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